Ī direct deposit can take the place of a paper check.
With a direct deposit, the funds are available in your account on the day you receive your payment. An electronic deposit into your account will usually process more quickly than paper checks. The electronic network is called the automated clearing house (ACH). It moves money through an electronic network from a person or entity paying you, such as an employer or the government, into your checking, savings, or other bank account. What Is Direct Deposit?Ī direct deposit is an electronic funds transfer. Here's what you need to know about direct deposits. That way, you can feel confident in understanding the process. You may not think much about these types of deposits, but it helps to know how direct deposits work and when you may want to use them. Common examples of direct deposits are having your paycheck or pension deposited into your bank account automatically. With a direct deposit, funds are transferred electronically into a bank account - eliminating the need for physical checks or cash transfers.
What Is Direct Deposit and How Does It Work?
